The retail sales of China's catering industry surpassed 880 billion yuan (110 billion U.S. dollars) in 2005, a rise of 16.8 percent year on year, or 126.8 billion yuan more than that in the previous year.

Figures published on Friday by the Ministry of Commerce showed that the industry has maintained double-digit growth for 15 consecutive years.

Sources with the ministry said China's catering industry grew steadily in 2005 and food consumption has played an important role in spurring domestic consumption, forecasting that the industry would achieve 48.4 billion yuan in taxes in the year, a year-on-year increase of 17.8 percent.

During January-November period of 2005, the number of newly approved foreign-funded catering projects grew 1.23 percent year-on-year to 820, with contractual use of foreign funds totaling 972 million U.S. dollars, up 16.16 percent.

The actual use of foreign funds fell 32.68 percent to 252 million dollars.

The sources said the market of China's catering industry in 2005 was 159 times that of 1978 when the country began to implement reform and opening-up policies.

Last year, Chinese spent an average 677 yuan (85 U.S. dollars) per head in restaurants, an increase of 17.6 percent year on year, or 101 yuan more than that in 2004, the figures showed.

The ministry predicted that the industry would maintain fast growth in the year 2006, and retail sales are expected to exceed 1 trillion yuan. (1 U.S. dollar = 8 yuan)

Source: Xinhua